Ibex puts 10,000 points at risk

Markets, including Wall Street, slowed after the latest warnings from central banks cooled expectations of an imminent rate cut. Capricorn’s retreat threatens the 10,000-point barrier, with Sabadell at the forefront of downward pressure.

The markets return to normal for the second day of the week. Yesterday’s meeting was marked by a holiday in Wall Street, with a subsequent decrease in movement and activity. The New York Stock Exchange reopens its doors today, and does so with a bearish sign in futures.

Two weeks before the Federal Reserve’s March meeting, the latest messages from both the Fed and the European Central Bank cast doubt on such remarkable progress in the economy. start of rate cuts. Both central banks say it is too early to talk openly about cutting rates. The market, particularly bullish since late October, is taking note and reducing the likelihood of a Fed rate cut in March to 66%, down from 77% last week.

US markets are restoring activity, and debt interest they resume their ascent. The required yield on US bonds is back at 4%, taking into account the Fed as well as rising geopolitical tensions in the Red Sea. In Europe, German bond rates have risen above 2.20% at times after Germany’s inflation rate was confirmed at 3.7% in December, while 10-year Spanish bond yields are rising to nearly 3.20%.

Spanish stock market

Capricorn 35 This adds to the caution that was already reflected in yesterday’s close, which ended with rates down slightly by 0.18%. The Spanish Selective Index failed to hold on to the 10,000-point level it had surpassed for much of yesterday’s session and today fell to intraday lows below the 10,000-point barrier set on Ibex since late November. A possible delay in the start of rate cuts and the fallout from the Red Sea crisis could add to economic and business pressures.

While waiting for clarity in the monetary and economic scenario, Ibex banks have cooled the bullish momentum with which they started the year. One of its members Sabadell Banktoday blames the drop on lower estimates and recommendations from JPMorgan analysts.

Securities sensitive to funding costs, such as renewable energy companies, are again underperforming Ibex. Solarium and Aktsiona Energy consolidated their decline this year above the 10% barrier, which was only surpassed by Grifols in the decline section.

Grifols, a week after its initial decline last Tuesday, is seeking to at least regain the stability its price finally achieved yesterday. The blood products company avoided the shocks of previous sessions to close 0.25% higher, thanks in part to a statement that allayed doubts about the sale of Shanghai Rass, a key transaction to strengthen its balance sheet. Today he leads Ibex’s achievements.

The rest European bags echoes the bearish sign Wall Street is taking as it returns to activity. Latest messages from the ECB suggest delaying the deadline for the first rate cut, an extension that could delay the reactivation of an economy now threatened by the fallout from the Red Sea crisis. The pan-European Stoxx 600 index, after repeatedly hitting the 480-point mark, is retreating, putting the 470-point threshold at risk.

Next extension.